SCL plans ‘India chip programme’
CHANDIGARH, Aug 13 — All States must put e-governance effectively in place to provide hassle-free delivery of services. Citizens must demand and governments must deliver.

PIL challenges sick units Act
NEW DELHI, Aug 13 — The Delhi High Court today sought a reply from the Centre on a petition seeking striking down of Section 22 of the Sick Industrial Companies (Special Provision) Act, which provides protection to sick industries, including recovery of sales tax.

Tata leaves poll funding to companies
BANGALORE, Aug 13 — The Chairman of Tata Industries Ltd, Ratan Tata, today said it was left to all Tata companies to decide individually on contributing to a trust, created by Tata group, on funding parties in elections.

A beauty in city
CHANDIGARH, Aug 13 — Mr Ravi Bhandari, Zonal Manager (North), Kinetic Motor Company Ltd., launched a new scooterette, Kinetic SX, here today. Kinetic SX is 73 cc with variomatic transmission, a separate fuel tank and a self-start facility.

NHPC and BBMB tie-up for projects
NEW DELHI, August 13 — The National Hydro-electric Power Corporation and the BBMB have decided to jointly take up consultancy assignments for hydro-electric projects in India and abroad. An MoU has already been signed in this regard.

Uco Bank profit doubles
CHANDIGARH, Aug 13 — Uco Bank today declared its operating profit of Rs 26.69 crore in the first quarter of the current fiscal compared to Rs 11.46 crore in the corresponding period last year.

Congress promises fiscal discipline, price control

NEW DELHI, Aug 13 (PTI) — The Congress today promised to usher in a Fiscal Responsibility Act to discipline government expenditure, new companies, competition and foreign exchange management laws, changes in the Essential Commodities Act and restructure the administered price mechanism in the oil sector to provide subsidies for kerosene only.

In its 60-page election manifesto released today, the Congress also promised to forge a national consensus on new Industrial Relations Bill, announce a new textile policy and restructure insurance and pension sectors if it was voted back to power.

The party said it would speed up implementation of public and private infrastructure projects, carry on further the power sector reforms, corporatise DoT, continue with financial sector reforms and revive export growth at 15 to 20 per cent.

It would work to create a South Asian Parliament and make South Asia Free Trade Association (SAFTA) a reality soon, it said.

Stating that faster employment generation and poverty alleviation would the cornerstone of the party’s economic policies, the manifesto promised to create one crore jobs annually.

It also assured to restore momentum of public investment in agriculture, promote agro-processing industry and invest 6 per cent of GDP in education.

pointing out that India could not sustain present levels of revenue and fiscal deficits of both Union and State Governments, the manifesto promised to phase out revenue deficit in the next three to four years.

The combined fiscal deficit of Union and State Governments would be stabilised below 4 per cent of GDP, it said.

The party would explore the feasibility of constitutional ceiling on growth of public debt and the Fiscal Responsibility Act would ensure transparency in fiscal discipline. However, it would not be at the cost of investment in essential social and physical infrastructure.

Expenditure management would receive highest priority and a high-level expenditure management commission would be set up to bring about national consensus on scope, nature, level and growth of public expenditures, including implicit and explicit subsidies, which were unsustainable at the current level of 14 to 15 per cent of GDP.

Structure of government expenses would undergo fundamental re-orientation to enhance investments in education, health, nutrition, irrigation, agriculture and other essential sector, it said.

Tax reforms would continue, it said, adding measures would be taken to enlarge its base, while a new simplified direct taxes act would be introduced after a public discussion.

Reaffirming its resolve to move toward value-added tax (VAT) system, the manifesto said it would be introduced in the next four to five years accompanied by a major simplification of rate structure.

SCL plans ‘India chip programme’
Tribune News Service

CHANDIGARH, Aug 13 — All States must put e-governance effectively in place to provide hassle-free delivery of services. Citizens must demand and governments must deliver.

This was stated by Mr Ravindra Gupta, Secretary, Union Department of Electronics, at an “Information technology and electronics entrepreneurs development meet” organised by Semiconductor Complex Ltd (SCL) in collaboration with the Centre for Electronics Design and Technology of India (CEDTI) at Mohali today.

Mr N.S. Kalsi, Director-cum-Special Secretary, DIS & AR, Punjab, said to promote IT a new package will be announced soon. To develop IT infrastructure, the Punjab Government has entered into a joint venture with World-Tel of Sam Pitroda.

Making a presentation on the IT initiatives Punjab has taken, Mr Kalsi said knowledge of IT will be made compulsory for all future government jobs.

Earlier, Dr M.J.Zarabi, CMD, SCL, said SCL is shortly launching an “India chip programme” under which entrepreneurs can make designs at SCL’s fabrication facility, thus reducing costs. They can benefit from HCL’s expertise in chip design and manufacture to help their businesses.

Smart cards is a major thrust area and SCL is trying to position itself as the smart cards manufacturer, he added.

Mr Dewang Mehta, President, Nasscom, highlighted emerging areas for entrepreneurship in the IT industry that include software products and packages, ERP and IT-enabled services offering a commercial opportunity to the tune of $ 20 billion by the year 2008. He also highlighted the importance of electronic commerce which represents a major opportunity for business.

Mr Ajai Chowdhry, President & CEO, HCL Infosystems Ltd, and Air Marshall (retd) K.S. Bhatia spoke on opportunities in the IT hardware and electronics, respectively.

PIL challenges sick units Act

NEW DELHI, Aug 13 (PTI) — The Delhi High Court today sought a reply from the Centre on a petition seeking striking down of Section 22 of the Sick Industrial Companies (Special Provision) Act, which provides protection to sick industries, including recovery of sales tax.

Issuing notices to the Finance Ministry, the BIFR, the Governor of the RBI, the Department of Law, Justice and Company Affairs and the Department of Public Enterprises, a division Bench comprising Chief Justice S. N. Variava and Justice S. K. Mahajan asked the respondents to file replies by September 17.

The court was hearing a PIL petition filed by advocate B. L. Wadhera which sought the striking down of Section 22 of the Act on the ground that a large number of companies were “causing sickness” on account of factors other than the circumstances beyond their control, to take benefits under it.

“Such companies are not depositing statutory dues like sales tax with the authorities and no action can be taken against them for recovery of the money by the Sales Tax Department, except with the permission of the BIFR,” it said.

The section provides that no proceeding for winding up of the sick company or for execution, distress against any of its properties on appointment of a receiver and suit for recovery can be initiated under the law except with the consent of the BIFR.

Under the Act a sick industry means a company (being registered for not less than five years) which has at the end of any financial year accumulated losses equal or exceeding to its entire net worth.

The petition said the protection given to the sick companies under the Act had encouraged “unfair practice” as companies “deliberately” were causing sickness to themselves to exploit the provision of Section 22. This was affecting the growth of the economy and industrial progress.

“Sick companies after having got their rehabilitations schemes sanctioned, collect the sales tax and retain the money with them for their own use. Such manipulative and unscrupulous managements of sick companies derive unfair advantage of the provision of the Section 22,” the petitioner claimed.

“The main objective of the Act was to safeguard the economy and to protect viable sick units and rehabilitate them,” he said adding that under the policy of liberalisation such a protection was being “misutilised” by the companies.

Citing a Supreme Court observation, Wadhera said Justice Jeevan Reddy in his order of 1997 had said that “there is urgent need of causing appropriate amendment and modification of the provision of the act to ensure that its object is not frustrated by dishonest companies through unfair practices against public interest by way of misuse of public funds.”

Tata leaves poll funding to companies

BANGALORE, Aug 13 (PTI) — The Chairman of Tata Industries Ltd, Ratan Tata, today said it was left to all Tata companies to decide individually on contributing to a trust, created by Tata group, on funding parties in elections.

Denying that a decision had been taken not to fund parties, Tata told reporters in a chat after a function at Whitefield, near here, that “it was a stand the media had created. It did not come from us”.

Pointing out that the Tata group had created a trust on election funding some years ago, he said individual companies would decide whether to contribute to the trust or not.

“Each individual company has to decide on its own. Each of the company’s boards will decide”, he said.

On the group’s restructuring plan for the next century, Tata said the focus would be on consolidation and “designing our core businesses.”

“Each of them is in a different area. What we will probably do is to work together in a complementary way designing areas of specialisation and work together”, he said.

Maruti in used car business

NEW DELHI, Aug 13 (UNI) — Maruti Udyog Limited (MUL) today forayed into the used car business with the establishment of its first service centre under a tripartite joint venture with Sumitomo Corporation of Japan and Countrywide Finance.

Inaugurating the service centre at Okhla, MUL Managing Director R.S.S.L.N. Bhaskarudu said the centre has been set up with a total investment of Rs 11.5 crore.

“We are looking at setting up similar service stations across the country but a final decision would be taken viewing the success of this venture,’’ he added.

“Used cars would be traded through this venture, which is totally independent of MUL. The venture would buy and sell used cars on its own,’’ Mr Bhaskarudu said.

MUL and Sumitomo both control 47.5 per cent stake each in the venture while Maruti Countrywide Auto Financial Services Limited holds the remaining 5 per cent. It will operate under the trade name of ‘Maruti Service Masters’.

A beauty in city
Tribune News Service

CHANDIGARH, Aug 13 — Mr Ravi Bhandari, Zonal Manager (North), Kinetic Motor Company Ltd., launched a new scooterette, Kinetic SX, here today. Kinetic SX is 73 cc with variomatic transmission, a separate fuel tank and a self-start facility.

Mr Bhandari said that Kinetic vehicles have 52 per cent of the all-India market share according to the recent survey of the first quarter of the fiscal.

Mr Mohinder Bhandari, Senior Manager, Kinetic Engineering, said that the company plans to launch two types of 4-stroke bikes of 100 cc and 125 cc in October with Korean collaboration.

The main attraction of the Kinetic SX is that it has the fuel capacity of 5.5 litres in place of 3.5 litres and gives an average of 65 km per litre under ideal conditions. Its ex-showroom price is Rs 24990.

NHPC and BBMB tie-up for projects
Tribune News Service

NEW DELHI, August 13 — The National Hydro-electric Power Corporation (NHPC) and the BBMB have decided to jointly take up consultancy assignments for hydro-electric projects in India and abroad. An MoU has already been signed in this regard.

The scope of consultancy services proposed include identification of potential hydro sites, preparation of feasibility and detailed project reports, environmental and ecological issues, reservoir management and flood control, renovation, modernisation and upgrading of existing hydro power plants, and technical problems pertaining to civil, mechanical and geo-technical fields.

The joint venture will also help in setting up and review of organisational structure for hydro-electric projects,tendering, bid evaluation, project management, recruitment of personnel, human resource development and consultancy.

Uco Bank profit doubles
Tribune News Service

CHANDIGARH, Aug 13 — Uco Bank today declared its operating profit of Rs 26.69 crore in the first quarter of the current fiscal compared to Rs 11.46 crore in the corresponding period last year.

The bank’s total credit increased by 7.09 per cent from Rs 5,712 crore to Rs 6,117 crore.

The increase in credit was despite its deposits remaining almost stagnant at Rs 13,839 crore (Rs 13,831 crore last year) in the first quarter. Investments of the bank recorded a growth of 3.7 per cent from Rs 8,395.66 crore to Rs 8,706 crore.

SHIMLA: The special settlement scheme launched for the recovery of outstanding loans has enabled Uco Bank to reduce its NPAs by Rs 98.40 lakh in the Himachal zone in the first three months of the year.

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Officers’ meet
Tribune News Service
CHANDIGARH, Aug 13 — The Central Bank Officers Association will hold its 11th biennial conference at Kumari Rukmani Devi Hall, Ambala cantt, on August 15.